- On November 3rd, OTP Premium Return reopens for subscriptions, for 5 working days, for the investors who want to obtain, on medium term, consistent yields in low risk conditions;
- Closed-end fund, with an innovative strategy frequently used by large investment funds operating on international markets, Absolute-Return strategy, enabling more efficient investments by maximizing the risk/ return ratio
Bucharest, October 30th, 2014. OTP Asset Management Romania, a leading investment fund manager in Romania in terms of innovation, announces the reopening for subscriptions of the closed-end fund OTP Premium Return.
The flexibility of the investment policy allows the portfolio manager to dynamically rebalance the Fund’s assets, depending on market opportunities, in order to obtain the most efficient return / risk ratio.
Starting from the global external factors, currently the fund’s portfolio is structured based on a series of hypotheses, such as:
- The capital markets will register a high volatility over the following next months, however there is an appreciation potential of the main financial indicators for at least one year;
- The returns registered for US treasury bonds will increase throughout a period of 1 year, resulting in a decrease of the differential between the returns obtained from US governments bonds at 2, 5, 10 years;
- Given the increase of returns from US government securities, as well as from the measures taken by European Central Bank, OTP Asset Management experts are estimating an appreciation of US dollar within the following year and the increased yield of equities compared to bonds;
- Due to the low inflation rate and the standstill of the European economy,
OTP Asset Management experts are expecting massive cash injections on the market from the European Central Bank. They also anticipate that Euro interest rates will be maintained at a low level for a long period of time and that the interest will increase for corporate bonds, which are high yields generators;
- Locally, taking into account the low inflation rate and low interest rates, the dividend return for certain companies listed on the Bucharest Stock Exchange is very attractive. Even under high volatility conditions, we are counting on Proprietatea Fund shares.
“We are constantly searching for the most inspired investment opportunities. Through OTP Premium Return, we are aiming to create medium and long-term added value, regardless of the evolution of the main capital markets. In the current context, given the geopolitical circumstances and the expectations regarding the evolution of the Euro zone, we identified opportunities to maximize investments based on requirements that ensure the stability of the Fund under controlled volatility conditions”, declared Dragoş Manolescu, Investments Director, OTP Asset Management Romania.
The investment strategy of the closed-end fund OTP Premium Return is focused on obtaining consistent returns, under low volatility conditions, through the dynamic allocation of the fund’s capital.
Through its investment policy, the fund aims at obtaining positive returns, above bank deposits interest rates, throughout an investment horizon of at least one year, regardless of the evolution of the capital markets.
The fund is mainly addressed to investors, both individuals and legal entities, who intend to invest for minimum 1 year, but can also access their money on a monthly basis.
The minimum investment value set out for OTP Premium Return is one fund unit, and the nominal value of the fund unit is 1,000 RON.
With OTP Premium Return, customers may subscribe and redeem on a monthly basis, within the first 5 working days and may redeem starting with the month following the subscription.
Present on the local market since 2007, OTP Asset Management Romania SAI S.A. is among top six investment fund managers in Romania, based on the managed assets. The company manages a wide range of investment funds, providing investors with the possibility to access equity investments, through OTP AvantisRO, as well as government securities and bonds, through OTP Obligaţiuni, OTP ComodisRO, OTP Euro Bond and OTP Dollar Bond.
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